The UAE’s banking sector recorded an 8.1% rise in net international reserves during the first half of 2024, according to the latest statistical bulletin from the Central Bank of the UAE. Reserves increased by AED 92.3 billion, reaching AED 1.238 trillion by the end of June, compared to AED 1.145 trillion in the same period last year.
The Central Bank held AED 769.7 billion of these reserves, marking a 14.3% growth from AED 673.42 billion at the end of 2023. Meanwhile, banks operating within the UAE accounted for AED 468.13 billion in reserves.
The bulletin also revealed substantial growth in the Central Bank’s gold reserves, which surged 22.1% year-on-year to AED 20.467 billion by June 2024, up from AED 16.768 billion a year prior. In the first half of 2024 alone, gold reserves climbed by 12.8%.
The Central Bank’s assets are diversified, comprising gold, liquid funds, certificates of deposit, and held-to-maturity securities. Its gold holdings have seen remarkable growth over recent years, rising from AED 1.134 billion in 2018 to AED 12.862 billion by the end of 2020.
In addition to financial reserves, the UAE’s banking sector has experienced a steady rise in employment. The number of employees increased to 37,811 by June 2024, up from 36,737 in June 2023. Notably, national banks accounted for 31,628 employees, a rise of over 2,000 from the previous year.
The UAE banking sector now comprises 61 licensed commercial banks, including 23 national banks and 38 foreign banks. The number of bank branches stands at 554, with national banks holding 482 branches and foreign banks 72. E-banking services have also expanded, with 46 units affiliated with national banks.
The UAE’s banking operations reflect robust activity, with the value of transactions processed through the UAE Funds Transfer System (UAEFTS) surpassing AED 9.32 trillion in the first half of 2024. This marks a 16% year-on-year increase compared to AED 8.01 trillion during the same period in 2023. These transfers were divided into AED 5.829 trillion in interbank transfers and AED 3.49 trillion in customer transactions.
Cheque clearances also saw significant activity, with AED 646.6 billion cleared across 11.03 million cheques in the first six months of the year. Cash deposits at the Central Bank totaled AED 93.6 billion, while cash withdrawals reached AED 103.2 billion during this period.
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